W T G Hugoton, LP

Original Volume No. 1

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Effective Date: 08/01/2007, Docket: CP06- 90-002, Status: Effective

Original Sheet No. 260 Original Sheet No. 260 : Effective

 

GENERAL TERMS AND CONDITIONS

 

39.7 WTG Hugoton may determine that a Shipper is no longer creditworthy if,

in the reasonable opinion of WTG Hugoton, a Shipper (or its guarantor) suffers

a material adverse change (i.e., default on indebtedness, restatement of

financials, non-payment) in its financial condition such that Shipper's

ability to perform its obligations to WTG Hugoton is materially impaired. If

Shipper is no longer creditworthy, WTG Hugoton may require financial

statements and, when applicable, Security as set forth herein. Shipper shall

have the right to demonstrate that the material adverse change has been

remedied and request that WTG Hugoton reevaluate the Shipper's

creditworthiness to determine whether the Security requirements can be

terminated.

 

39.8 If Shipper is unable to maintain creditworthiness and has not provided

Security, any executed service agreement(s) may be terminated or suspended as

set forth herein. Shipper is not responsible for reservation charges while

service is suspended. If the contract is terminated, WTG Hugoton shall net

and/or setoff, as allowed by law, all positions (i.e., transportation,

imbalances, rate refunds, etc.) prior to settling outstanding account balances

with the Shipper. WTG Hugoton shall have the right to assert any liens or

other interests, consistent with applicable law, against any gas remaining on

its system.

 

40. CAPACITY RELEASE

 

40.1 Release Options. Any eligible Shipper, excluding certificated 7(c)

Shippers, if any, may release firm capacity under one of the following

options, as applicable:

 

(a) Level I. Permanent Release of Firm Capacity. Capacity will be

permanently released for the remaining term of the contract. All contract

terms and points remain the same.

 

(b) Level II. Temporary Release of Firm Capacity With No Recall.

 

(c) Level III. Temporary Release of Firm Capacity with Recall. The

released capacity is subject to recall based on limitations as stated in the

Term Sheet by each Releasing Shipper. The nomination procedure must be

adhered to.

 

(d) Levels II and III. Releases for One Calendar Month or Less. Such

releases are exempt from the advance posting and bidding requirements.

However, such releases are not eligible for: (1) Extension or rollover

without first complying with the advance posting and bidding requirements, or,

(2) Re-release without posting to the same shipper until twenty-eight (28)

days after the first release period has concluded.